Babcock (NYSE:BW) Shares Gap Up After Strong Earnings

Key Points

• Babcock shares surged after the company reported adjusted EPS of $0.04, beating the $0.02 consensus, while quarterly revenue reached $319.7 million—up 130% year over year and well above expectations.
• The company raised its 2026 adjusted EBITDA forecast to $80 million–$105 million and highlighted growth in data-center power, including a Siemens Energy agreement covering 20 steam turbine generator sets. Babcock also reported a $2.6 billion backlog and a pipeline exceeding $14 billion.
• Despite improving fundamentals and planned share repurchases, analysts remain cautious: Babcock has a consensus “Hold” rating and a $14.25 target price, while the stock continues to show elevated volatility.

Babcock (NYSE:BW - Get Free Report) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $8.88, but opened at $11.86. Babcock shares last traded at $10.4350, with a volume of 5,525,326 shares traded.

The technology company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.02 by $0.02. The firm had revenue of $319.69 million during the quarter, compared to the consensus estimate of $196.95 million.

Trending Headlines about Babcock

Here are the key news stories impacting Babcock this week:

• Positive Sentiment: Results substantially exceeded expectations: Second-quarter revenue jumped 130% year over year to $319.7 million, while the company swung to net income of $14.3 million from a $58.5 million loss a year earlier. Adjusted EBITDA reached $21.8 million, and adjusted EPS of $0.04 topped the roughly $0.02-$0.03 consensus estimates. Babcock & Wilcox Enterprises Reports Second Quarter 2026 Results
• Positive Sentiment: 2026 outlook was raised: Babcock & Wilcox increased its full-year adjusted EBITDA target to $80 million-$105 million, reinforcing the market’s view that the company’s turnaround is gaining traction. Babcock & Wilcox targets 2026 adjusted EBITDA amid pipeline expansion
• Positive Sentiment: AI power opportunity expanded: The company signed an agreement with Siemens Energy to begin work on 20 steam turbine generator sets totaling 1 gigawatt of capacity for its FastPower program, which targets data-center power projects. Babcock & Wilcox also reported a $2.6 billion backlog and a global pipeline exceeding $14 billion. Babcock & Wilcox signs Siemens Energy turbine agreement
• Positive Sentiment: Shareholder and balance-sheet actions added support: The company authorized up to $50 million in share repurchases and announced the repurchase of its remaining $61.8 million of bonds due in December 2026.
• Neutral Sentiment: Analyst coverage remains cautious, with Babcock & Wilcox carrying a consensus “Hold” rating. The stock’s wide 52-week range and trading well below its moving averages also indicate elevated volatility despite the improving fundamentals. Babcock given consensus Hold rating

Analysts Set New Price Targets

A number of brokerages have commented on BW. Northland Securities set a $23.00 price target on shares of Babcock in a research note on Tuesday, May 12th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Babcock in a research note on Friday, July 17th. Finally, Wall Street Zen cut Babcock from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Babcock currently has an average rating of "Hold" and a consensus target price of $14.25.

Hedge Funds Weigh In On Babcock

Several institutional investors have recently bought and sold shares of BW. Marshall Wace LLP boosted its stake in Babcock by 93.0% in the second quarter. Marshall Wace LLP now owns 395,945 shares of the technology company's stock worth $380,000 after purchasing an additional 190,814 shares in the last quarter. Nomura Holdings Inc. grew its stake in shares of Babcock by 58.2% during the second quarter. Nomura Holdings Inc. now owns 127,382 shares of the technology company's stock valued at $123,000 after purchasing an additional 46,884 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Babcock by 54.3% in the third quarter. Vanguard Group Inc. now owns 4,423,243 shares of the technology company's stock valued at $12,827,000 after purchasing an additional 1,556,692 shares in the last quarter. Jefferies Financial Group Inc. acquired a new stake in shares of Babcock in the third quarter valued at approximately $74,000. Finally, Legal & General Group Plc bought a new position in Babcock in the 3rd quarter worth approximately $14,086,000. Institutional investors own 83.17% of the company's stock.

Babcock Stock Performance

The firm's 50-day moving average is $12.77 and its two-hundred day moving average is $13.63. The stock has a market cap of $1.48 billion, a P/E ratio of -11.64 and a beta of 1.22.

Babcock Company Profile

Babcock & Wilcox Enterprises, Inc NYSE: BW is a specialized provider of energy and environmental technologies and services serving power generation and heavy industrial markets. The company designs, manufactures and maintains critical components and systems that support the safe and efficient operation of both fossil-fuel and renewable power facilities. Its core offerings include industrial and utility boilers, environmental control systems for emissions reduction, and aftermarket support services ranging from inspection and maintenance to spare parts management.

In addition to its boiler and emissions control portfolio, Babcock & Wilcox Enterprises delivers lifecycle solutions aimed at enhancing plant performance and compliance.

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